Carpa, Inc., Cross-Appellants. v. Ward Foods, Inc., Cross-Appellees

567 F.2d 1316, 24 Fed. R. Serv. 2d 1398, 1978 U.S. App. LEXIS 12548
CourtCourt of Appeals for the Fifth Circuit
DecidedFebruary 17, 1978
Docket77-1245
StatusPublished
Cited by113 cases

This text of 567 F.2d 1316 (Carpa, Inc., Cross-Appellants. v. Ward Foods, Inc., Cross-Appellees) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carpa, Inc., Cross-Appellants. v. Ward Foods, Inc., Cross-Appellees, 567 F.2d 1316, 24 Fed. R. Serv. 2d 1398, 1978 U.S. App. LEXIS 12548 (5th Cir. 1978).

Opinion

GOLDBERG, Circuit Judge:

After seven years of litigation in this private antitrust suit the original dispute between the parties has become a mere footnote, 1 and the adversaries and their attorneys now litigate over costs, attorneys’ fees, interest on the judgment, and even interest on attorneys’ fees. In Biblical times, such prolonged efforts in the fields were followed by a cessation of tillage and a year of rest. Litigants here seem to prefer the injunction of a different period,

Lay on, Macduff
And damn’d be ’him that first cries,
“Hold, enough!”

Plaintiffs Carpa, Inc. (owned by plaintiff Payne) and Boone owned and operated Zui-der Zee Restaurant franchises. They brought suit under the antitrust laws against defendant franchisor corporation Zuider Zee Oyster Bar, Inc. and its related corporations, against defendant Martin, who prior to 1968 was the chief stockholder of those corporations, and against defendant Ward Foods, (“Ward”) which purchased Martin’s shares in those corporations in 1968. Defendant Ward counterclaimed against plaintiff Boone for unpaid items purchased from Ward and its affiliates. The trial court entered judgment in the plaintiffs’ favor on the antitrust action. Boone’s share of the treble-damage award was $228,350.90, less $140,754.22 awarded to Ward on its counterclaim. In addition to the treble damage award, $202,380 was assessed against the defendants for plaintiffs’ attorneys’ fees. $76,904.40 of this attorneys’ fee award was allocable to plaintiff Boone. The authorizing statute, 15 U.S.C. § 15, provides for attorneys’ fees to successful antitrust plaintiffs. Here, because the plaintiffs had assigned their rights to attorneys’ fees to their counsel, the court awarded this sum directly to the plaintiffs’ attorneys. On an earlier appeal this court disallowed one item of the damage award amounting to $45,000 when trebled and affirmed the trial court’s judgment “in all [other] things.” Carpa, Inc. v. Ward Foods, Inc., 536 F.2d 39 (5th Cir. 1976) (hereinafter *1319 “Carpa I”). The case was remanded for entry of a final judgment. On remand, the district court (1) refused to offset against plaintiffs’ award for attorneys’ fees a state court judgment held by defendant Martin against plaintiff Boone, (2) allowed plaintiffs to recover six percent interest on attorneys’ fees, and (3) allowed plaintiffs to recover all their requested costs of court. Defendants now appeal from these portions of the judgment. The district court in its order also (4) refused to allow plaintiffs nine percent post-judgment interest from the effective date of a Texas enactment increasing the state statutory interest rate from six percent to nine percent. Plaintiffs cross-appeal from this portion of the judgment.

We hold (1) that the district court correctly concluded that defendants were not entitled to offset their state court judgment against the attorneys’ fee award, (2) that plaintiffs’ counsel were not entitled to recover interest on the attorneys’ fee award, (3) that the district court abused its discretion in taxing as costs sums spent for reproducing depositions without first making the necessary factual inquiries, but did not abuse its discretion in taxing as costs the plaintiffs’ share of the special master’s fee, and (4) that the district court’s order denying a nine percent rate of interest on the plaintiffs’ judgment should be reconsidered on remand in light of the Texas Supreme Court’s resolution of the issue in two cases presently pending before it.

I.

The first issue raised on appeal is whether the trial court erred in overruling defendants’ motion to set off against plaintiff Boone’s attorneys’ fee award a state court judgment held by defendant Martin. 2 Prior to the original judgment of the district court, Boone assigned his entitlement to recover attorneys’ fees to his counsel. After concluding that this assignment was valid, the district court awarded $76,904.40 in attorneys’ fees directly to Boone’s attorney. This assignment was challenged on appeal in Carpa I. We held that while the right to attorneys’ fees is accorded the injured party and not his counsel, an antitrust plaintiff may assign counsel his right to those fees. 536 F.2d at 52.

Defendant Martin now contends that even though the assignment is valid, Martin has a right to setoff against his obligation to pay attorneys’ fees his state court judgment against Boone. We disagree and hold that the decision of this Court in Carpa I upholding the assignment of attorneys’ fees encompassed this issue by necessary implication and, as the láw of the case, precludes consideration by the district court or by us of defendant Ward’s setoff motion. We therefore affirm the district court’s denial of defendants’ motion.

Under well-settled principles of law, a decision of this court at an earlier stage of the same case represents the law of the case. See Lehrman v. Gulf Oil Corp., 500 F.2d 659 (5th Cir. 1974), cert. denied, 420 U.S. 929, 95 S.Ct. 1128, 43 L.Ed.2d 400 (1975); Terrell v. Household Goods Carriers’ Bureau, 494 F.2d 16 (5th Cir.), cert. denied, 419 U.S. 987, 95 S.Ct. 246, 42 L.Ed.2d 260 (1974); Hodgson v. Brookhaven General Hospital, 470 F.2d 729 (5th Cir. 1972); Prudential Insurance Co. v. Morrow, 368 F.2d 813 (5th Cir. 1966) 1B J Moore’s Federal Practice ¶0.404 et seq (2d ed. 1974). As such, the earlier decision generally precludes consideration of any legal question that has already been decided. In White v. Murtha, 377 F.2d 428 (5th Cir. 1967), we noted that

[t]he “law of the case” rule is based on the salutary and sound public policy that litigation should come to an end. It is predicated on the premise that . it would be impossible for an appellate court to perform its duties satisfactorily *1320 and efficiently and expeditiously if a question, once considered and decided by it were to be litigated anew in the same case upon any and every subsequent appeal thereof.

Id. at 431.

The reach of the law of the case doctrine is not limitless. The doctrine is not an inexorable command that rigidly binds a court to its former decisions but rather is an expression of good sense and wise judicial practice. Terrell v. Household Goods Carriers’ Bureau, supra, 494 F.2d at 19.

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Bluebook (online)
567 F.2d 1316, 24 Fed. R. Serv. 2d 1398, 1978 U.S. App. LEXIS 12548, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carpa-inc-cross-appellants-v-ward-foods-inc-cross-appellees-ca5-1978.